Attention young Aussies! We need to talk about life insurance

In a survey of over 1,000 people, life insurer Integrity, found that Aussies would prefer talking to their partner about past relationships, rather than life insurance and what to do about finances in the event of death or disability.

What to do about money after the death of one partner was third on the list of top three taboo topics for Australians, they’re also willing to duck and dodge sharing opinions about their partner’s friends and voicing opinions about relatives.

It also found the highest discomfort levels, compared to other age groups, were among young Aussies, with almost half (46%) between 25 and 34 years saying conversations about money and death were a ‘no-go’ area.

RELATED: How your finances change from your 20s to your 30s

Mozo’s Director Kirsty Lamont said that young Aussies needed to at least understand what it means to be adequately insured and to start thinking about when life insurance will become important for them.

“Life insurance may not be glamorous, but it is something you should start thinking about before you really need it,” she said.

“Once you start making major financial commitments like buying a house or starting a family it’s worth looking into a policy.  It’s probably not as expensive as you think, and could be crucial in an unfortunate situation.”

How to get the right life insurance:

Understand why you need cover

To put it simply, life insurance cover is the safety net for your family in the unfortunate circumstance that you (and your paycheck) are no longer there. It can help out with a number of different expenses, including mortgage debt, personal debt, living costs, funeral expenses and more.

Still not sure if you need life insurance? Check out our life insurance guide.

Know which cover you need

There are different levels of life insurance cover depending on where you are in life.Different policies you might consider include: 

  • Term life insurance: otherwise known as life cover or death cover, pays a lump sum benefit in the event that you pass away. This is probably what you think of when you think of life insurance.
  • Total and permanent disability cover: this pays a set amount to help with rehabilitation or living costs, if you suffer a partial or full disablement and aren’t able to work ever again.
  • Income protection cover: these policies are often purchased separately to life cover and replace any lost income if you’re unable to work for a period of time due to illness or injury.  

At big milestones like buying a new home, having a baby or starting a new job you’ll also need to review your cover and make sure it’s still enough to secure your family’s future.

Compare your options

You should never jump head first into a life insurance policy without first looking into what’s out there. By taking the time to research, not only could you find a lower price, but also a better option to suit your needs. If you’re ready to talk about life insurance, then start by comparing some life insurance offers with Mozo today.